Bangladesh Bank BB) has asked banks not to do transactions with Sri Lanka through the Asian Clearing Union (ACU) mechanism.
"In response to the self-motivated decision by the Central Bank of Sri Lanka (CBSL) to remain temporarily suspended from the ACU mechanism with effect from October 14, 2022; all Authorised Dealers (ADs) are advised not to do any trade and trade-related transactions with Sri Lanka through ACU mechanism," as per a BB circular issued on Thursday, reports BSS.
The ACU is an arrangement through which participating countries settle import payments for intra-regional transactions.